Basics and Practical Overview of VAT Management in the EU: Spotlight on the French Practice a Few Months After the Adoption of the Reverse Charge of VAT on Imports

Abstract

Value-Added Tax (hereinafter VAT) is due on importation together with customs duties and other import taxes, including assigned taxes. In France, since 1 January 2022, Customs is no longer in charge of the management and collection of import VAT, which has been transferred to the Treasury Department of the French state. VAT is recoverable under the principle of «tax neutrality». The generalization of the import VAT reverse charge in France (Law n°2019-1479 of 28 December 2019 – Article 181) since 2022 appears to be a welcomed simplification. The import VAT reverse charge is one of the four main arrangements for the management of import VAT settled in the VAT Directive (Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax). French Customs considers that certain French taxes no longer follow the VAT regime. However, this rupture point does not come without legal difficulties. VAT, customs, import VAT reverse charge